Pat Gelsinger has officially resigned as CEO of Intel, marking a significant shift for the iconic chipmaker less than four years after he assumed leadership. His departure, announced on December 1, comes after the Intel board expressed dissatisfaction with the progress of his ambitious turnaround strategy, which aimed to reclaim the company’s position as a leader in chip manufacturing. Gelsinger, who began his career at Intel in 1979 and became its first chief technology officer, chose to step down when faced with the possibility of being removed.
Intel has seen its market value decline drastically, now worth over 30 times less than Nvidia, a rival that recently replaced Intel in the Dow Jones Industrial Average. While Gelsinger had assured stakeholders that the company’s manufacturing plans were on track, the results are not expected to materialize until next year when a flagship laptop chip is set to return to production.
In the meantime, David Zinsner and Michelle Johnston Holthaus have been appointed as interim co-CEOs while the board seeks a permanent successor for Gelsinger, who has also relinquished his seat on the board. Frank Yeary, the independent chair of Intel’s board, will step in as interim executive chair during this transition.
Gelsinger’s tenure saw significant challenges as Intel posted losses of $16.6 billion, and its stock plummeted by approximately 60% since he took the reins. Notably, he initiated plans to lay off about 15,000 employees as part of a broader cost-cutting strategy aiming to save $10 billion by 2025. Despite these efforts, Intel continues to navigate a demanding market.
Amid the uncertainties, Gelsinger remains proud of the company’s achievements and recognizes the tough decisions made in response to the rapidly changing industry landscape. Under his leadership, Intel focused on expanding its foundry operations in the United States and Europe, bolstered by substantial governmental support to increase domestic chip production and reduce dependence on Asian suppliers.
As Intel enters this new chapter, the company faces a crucial opportunity to reassess its strategies and innovations. With sustained focus and investment in technology, there is potential for a positive turnaround, reinvigorating its legacy as a pioneer in the semiconductor industry. The coming months will be pivotal in shaping Intel’s future and restoring its status as a key player in the tech sector.